What’s the Best Place to Purchase Bitcoins Online?

Bitcoins are the “hot potatoes” of this decade and it’s the wagon everyone wants go get on. However, there are a lot of basic questions that still remain unanswered. Which are the best places to buy Bitcoins is definitely one of them.

There are a lot of Bitcoin buying/selling/exchange platforms existing on the web. But the problem is that a negligible fraction of them are actually trustworthy. Also, other factors like “fee” ‘security” “anonymity” join in too when you’re looking for the ultimate, best place to buy Bitcoins so even a lower percentile of that fraction is worth buying Bitcoins from.

What are decentralized exchanges?

What are best decentralized exchanges?

Exchanges – huge list of guides and reviews

We have checked out and reviewed more than 20 exchanges, from the top ones to the almost unknown small and regional bitcoins. This list will be continually updated so make sure to revisit it every once in a while.

How to Instantly Buy Bitcoin Online With a Credit Card?

Depending of your location in the world, there are cheaper options available per country and I want to tell you I look to the safest way to get my Bitcoin, security related, and also with the least Fees possible before we go into buying. Otherwise I would still use the original system in place what the banks use to send money.

Bitcoin has a status of elite underground, based on the anonymity, and the direct delivery. The transaction goes directly from person A to Person B without the need to need of intermediate people, institutions, etc.

You should never use PayPal directly to sell/purchase Bitcoins unless it is a person you know that you can trust. But even then, play safe. I recommend you to always use an intermediate because the risk exists that you will get backcharged, losing your money or your bitcoins.

The easiest and fastest way to purchase bitcoins instantly with a credit card or debit card is via Coinbase . On Cex.io you can acquire $50 or less of bitcoin fast and usually within 10 minutes.

Limits are raised to $200 in four days and $500 in seven days as you prove to be a reliable customer.

However, you should be aware that purchasing bitcoins instantly with a debit or credit card will usually result in higher fees. The reason for that is because there are higher transaction and processing fees and a higher risk of fraud. Read a full guide on how and where to buy bitcoins with credit card.

Also, you should know that the Bitcoin price can vary throughout the world. That’s why I highly recommend you to do your research to make sure you are getting a fair deal.

How to Buy Bitcoin

Cex.io, Cryptopay and Coinbase are good places to start when purchasing bitcoins. However, there is no excuse for controlling your own private keys so I highly recommend you do not keep any bitcoins in their service.

I strongly recommend you to compare the exchange rate on your local exchange to a Bitcoin price index once you find a Bitcoin exchange in your country.

There are 4 types of Bitcoin exchange

CFD (contract for difference) – This method is based on mirroring the movement of an asset. The trader can create profit or losses based on the position he takes on the real asset, however the trader doesn’t own the asset. This is an easy way to trade bitcoin without any fees and allows to leverage the position of the trader.

Broker – A platform that allows to buy/sell bitcon from the broker for a commission or a fee.

Trading platform – A platform allows traders manage market positions, buy or sell assets to other traders on the platform.

OTC (Over the counter) – A peer-to-peer platform that allows to buy/sell bitcoin from an individual. Unlike a Trading platform that allows every trader to be exposed to the trades of other traders, OTC may not be that transparent.

What Makes a Bitcoin Exchange Best?

It’s only logical for me to explain what exactly makes one exchange better than the other before I can ask you to comprehend the best place to purchase Bitcoins.

Just because an exchange is offering no-signup required kind of features, or low buying fee doesn’t mean that it’ll necessarily be the best.

I wouldn’t directly point out which platform is the “best” because I’m not the most knowledgeable person on the planet on Bitcoins. They all have their own pros and cons.

Instead, I’ll walk you through what you should be looking for when you’re trying to land on the best place to purchase Bitcoins. After that you can compare all the available platforms based on your personal preferences.

When finding the best bitcoin exchange for trading bitcoins a number of factors must be considered. They will vary person-to-person depending on the factors below.

Fee

The first factor I personally consider before reaching a final verdict about any Bitcoin exchange is the fee it charges for the transactions because each Bitcoin exchange charges different fees for its services.

Most Bitcoin brokers sell bitcoins directly to buyers. They charge a flat rate of 1% per transaction, while exchanges with orderbooks are geared towards high volume trading, and often have fees of 0.25-0.50% per trade.

Also, it’s not advisable to keep Bitcoins permanently on any exchange for long so I also consider the fee I’ll have to pay in order to transfer the bits to my own personal wallet.

I highly recommend you to compare what’s the global price-index for Bitcoins. You can do it easily by simply Goggling “1BTC=$” (Or your currency!) and then compare what price the platform you’re on is offering. There’s considerable price difference between most of them so it’s best to compare 5+ platforms before zeroing in on any single one of them.

Once you find the lowest-priced platform you should wait because your hunt isn’t over yet. As I said, just the “price” isn’t what makes any platform the best place to purchase Bitcoins. That’s why we’ll dig in to the other aspects.

Exchange Rate

I highly recommend you to check how close is the exchange rate to the global average price found on an index. It is easier to get the best Bitcoin exchange rate if you compare a local Bitcoin exchange’s prices to a Bitcoin price index.

Payment Method

What mode of payment the platforms support is one of the primary factors when it comes to purchasing Bitcoins online. Different payment methods also incur varying fees so you’ll need to find a Bitcoin exchange that accepts your preferred payment method. Do they allow purchasing Bitcoins with Debit Card / Credit Card or/and purchasing Bitcoins with PayPal?

This also affects the fee structure. That’s why there might occur a fee difference based on which payment method you’re going with. Generally PayPal is the cheapest. Credit cards have a slightly higher fee and they are often charged a fee of 3-10%. The same goes for cash transactions. On the other hand most deposits with bank transfers are free.

Amount

Each Bitcoin exchange has different buying limits. This often varies depending on level of identity verification and if it’s not adequate and doesn’t suit your buying packets, it’s no use to you.

At Coinbase, for example, regular users may only buy up to $1,000 worth of bitcoins per day and fully verified users can purchase up to $50,000 per day. It is important to note that most exchanges offer a FAQ page online. The different levels of verification are explained there.

Speed

Buying bitcoins fast can be challenging, particularly when you want to buy them in larger amounts. When trying to choose the best place to purchase Bitcoins you should also consider how long it takes for the Bitcoins to arrive in your exchange wallet.

The speed might be influenced by your country, mode of payment and certain other factors. That’s why you should make sure to dig deep enough and get a clear picture of exactly how long the coins would take before arriving in your wallet.

Regulatory Compliance

In order to prevent money –laundering and fraud transactions most Bitcoin exchanges require some kind of verification these days. Local currency, like the U.S. dollar or Euro, must be exchanged for Bitcoins in order to purchase Bitcoins. In this process trust users must trust the Bitcoin exchange to secure money and not run away with funds and I highly recommend using a regulated Bitcoin exchange.

Most exchanges offer information about their regulatory compliance on their websites (for example Cex.io too requires identity verification via a national Identity card. It might also require a picture of the credit/debit card which you use for your transactions.)

If an exchange doesn’t offer information about who’s behind the site or information about regulation, I would recommend finding a different exchange.

Privacy

Bitcoins have the ability to be “anonymous” and this is the primary reason why Bitcoins are on the edge of overtaking traditional currency so I do not need to re-elaborate how important role “privacy” plays during Bitcoin transactions.

Exchanges that accept credit cards or bank transfers are required by law to collect information about users’ identities and you can check what kind of data or verification your Bitcoin buying platformsrequires off you.

Some platforms simply require a real-life photo of yours while most require some kind of identity verification. The most private way to purchase bitcoins is purchasing them by cash, it be through a P2P exchange like LocalBitcoins or at a Bitcoin ATM.

Getting a Bitcoin Wallet

History is filled with Bitcoin exchanges running away with users’ funds and that’s why I would strongly recommend moving your bitcoins off the exchange once you purchase and store your coins in a wallet you own.

There are different types of Bitcoin wallets. Each of them is offering unique features and benefits and the wallet that’s right for you will depend on your specific needs and on how you intend to use Bitcoin.

Wallets like the Ledger Nano and TREZOR make it easy to protect bitcoins and that’s why they are great for secure storage. Also, for those with greater technical knowledge Paper wallets are another good option.

I would recommend hot wallets if you’ll be making Bitcoin transactions frequently. They work across many devices so they are a better option.

Top 40+ Best Options to Buy Bitcoins Online Around the World

People often ask me if it possible to buy bitcoins with PayPal. With most of the exchanges, it is not possible to buy bitcoins with PayPal directly because PayPal bans its merchants from accepting PayPal payments for bitcoins. Buying bitcoin with PayPal is possible though – read this article to see where and how.

United States

If you want to purchase bitcoins online in the United States I would recommend Coinbase and Kraken. Coinbase is one of the world’s largest Bitcoin exchanges and you purchase bitcoin with a connected bank account at Coinbase. Most recently you can use Robinhood app as well.

Coinbase is the world’s most popular bitcoin wallet and users in the United States, Canada, most of Europe (European users can buy bitcoins with 3D secure credit or debit cards), and Singapore can purchase bitcoins with a connected bank account or SEPA transfer.

Indacoin is a global platform. It enables the fastest bitcoin purchases in more than 200 countries with a credit or debit card and no registration.

You will receive a call from Indacoin with a 4-digit code if it’s the first time you use the card. After that you will enter the code on your order page and you will have to enter a 3-digit code. This code can be found on your online card statement next to the charge amount.

For the first transaction you will have the limit of $50, for the second transaction you will have $100 available after four days of the initial purchase, $500 after eight days of the first purchase and the total limit for the first month will be $5,000. After that you will have no limits at all.

After your card is verified, cryptocurrency will be sent automatically within ten minutes after the payment.

CoinMama is also a global platform and it is a bitcoin broker that enables buying bitcoins with credit or debit cards. Fees are around 10% with limits of about $5,000 per day and $20,000 per month and bitcoins are received within a couple of minutes after verification.

LocalBitcoins is one of the most trusted platforms to buy Bitcoins from. It is an escrow service that helps match Bitcoin buyers and sellers and it offers the most diverse payment methods. It includes almost every payment method known to man, including Cash, NEFT, PayPal, Paytm, Western Union and what not. And the best thing is that it requires zero verification!

Buy Bitcoins in Africa

Frequently Asked Questions (FAQ)

Buying bitcoins fast with a credit card or debit card can be the fastest way for new users to get bitcoins and this can be as simple as online shopping which many of you are probably familiar with.

What are my risks when purchasing bitcoins with credit card?

You should know that there are disreputable companies selling bitcoins in order to collect credit card and personal information. They can use this information to potentially engage in scams or identity theft. That’s why I always work with companies that have a solid reputation and regulatory compliance.

It is also important to be sure you are familiar with your credit card company and how they handle buys of bitcoins because it is possible the charges are classified as cash advances. In these cases different fees or policies may apply.

Are there any disadvantages?

Size is the only disadvantage. It can be difficult and costly to use credit cards when purchasing bitcoins fast and in large amounts because of the higher risk of fraud for merchants and the increased processing and transaction fees.

Is it risky to provide identification documents to buy bitcoins?

Of course that purchasing bitcoins from regulatory compliant bitcoin exchanges can be risky. The service provider could be hacked and have it stolen, like all information provided online so you have to trust they will handle your documents with privacy and security.

Why was it difficult purchasing bitcoins with a credit card only once?

Bitcoin transactions are irreversible and merchants usually have to wait up to two months to receive cash after a credit card payment. Also, credit card payments are reversible, so selling bitcoins for credit card payments is very risky because of fraud.

Luckily, there are some companies that have discovered new and successful fraud prevention techniques.

It may be helpful to set up an account bitcoin provider, like Purse. This provider supports using a payment gift cards to buy bitcoins. When other options are not available these payment cards are a great resource for exchanging bitcoins.

Is it possible to buy bitcoins on multiple exchanges if the limits are too low?

Of course, because some limits are very low like $50 per day. That’s why I always buy from multiple places to accumulate a larger amount.

After I buy bitcoins, should I store them on the exchange?

No, because the safest thing would be to store your own bitcoins in your own bitcoin wallet.

Many people have lost hundreds of millions of dollars because of Bitcoin exchanges being hacked so after purchasing bitcoins you should instantly move them to a safe and secure wallet you control.

Note: It can be risky to buy bitcoins immediately because the companies provided are only listed as a convenience and not an endorsement. I recommend you to use them at your own risk and if you have any problems please report in the comments.

Conclusion

There isn’t any one “Best” exchange as such, to be honest, because it all depends on how much currency you wish to trade, where you are, how flexible you’re on the privacy and verification procedure and so on.

I’d just say all the platforms on this list are worth it. You can simply choose one or the other and make couple trades with them and you’ll figure out for yourselves the platform which is in most sync with your requirements after some time and then you can stick to it.

SpectroCoin: Use credit card or SEPA transfer in Europe to buy bitcoins

LocalBitcoins: Use cash to buy bitcoin anywhere with available sellers

Coinbase: buy bitcoins in the United States, Europe, Canada, or Singapore.

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